Your Daily Energy Report for November 7, 2024
Posted on 2024-11-07
Crude Oil
Crude Oil futures for December settled up $.67 or .935% at $72.36. Oil prices rose slightly on Thursday, recovering from a decline the previous day. This movement came as investors evaluated the effects of Donald Trump's presidential win and the Federal Reserve's recent interest rate cut, amidst a pause in the post-election rally of the US dollar. Trump's victory initially led to a sharp sell-off, with oil prices dropping over $2, as the dollar strengthened. However, prices later recovered. The Federal Reserve lowered interest rates by 0.25 percentage points to a range of 4.50%-4.75%, following a larger cut in September. Meanwhile, Hurricane Rafael, which made landfall in Cuba as a Category 3 storm, is expected to weaken before reaching the US Gulf Coast, reducing the risk of significant disruptions to oil production, which totals around 1.55 million barrels per day.
Natural Gas
Natural Gas futures for December settled down -$.054 or -1.966% at $2.693. Natural gas prices reversed earlier gains and fell on Thursday as traders processed new inventory data from the EIA and considered the potential effects of Hurricane Rafael on production and consumption. For the week ending November 1st, the US added 69 bcf of natural gas to storage, following a 79 bcf increase the previous week. The additions reflected lower-than-expected demand due to an unusually warm autumn, which kept heating needs in the Lower 48 states relatively low. Meanwhile, Hurricane Rafael caused a temporary shutdown of facilities responsible for about 7% of US Gulf of Mexico production midweek, raising concerns over supply disruptions in the region. However, expectations that the storm would weaken before making landfall in the US limited fears of widespread power grid failures, which in turn dampened concerns about a significant drop in demand for electricity.